Hi there this is Michael Bovee with ConsumerRecoveryNetwork.com.
Thanks for tuning into our YouTube Channel Debt Bytes.
Today, I want to cover more about debt settlement specifically settling debt with
a debt collector.
When it comes to debt collectors there is different types and who they work for so I
want to focus right now on dealing with a debt collector who is actually hired by
and working for your original creditor.
Debt buyers take up debt from your original creditor.
There is all kinds of ways you can be in touch with a debt collector.
Well let's assume for a moment you weren't paying your bill for the last 8
months to your credit card company and they have assigned it to xyz
debt collection company.
The debt collector has a window of opportunity to settle that, get paid on
whatever your creditor sent them to do their job.
When they do their job, when they get you to pay something or all of the debt or
settle it, is when they get paid. They typically work on a contingency.
You can use that information to your advantage. You see you don't know them your creditor.
They will come off as if you know they are the ones that you owe, but they are not.
They are really just trying to get paid.
So when you deal with a debt collector you saved up let's say 40% of your debt, 35%.
Most debt collectors have a script and I am not talking about phone script to try
and push your buttons and get you emotionally frothed up so you will pay them.
I am talking about the script of what they can accept as settlement or payment as
dictated by their boss, their credit card bank you are paying.
So they can only go so low in a settlement if you know what that is then
you can start target that, save up for it and know that your only going to try
and negotiate with a debt collector hired by your creditor when you have close to that amount.
You can fund a settlement with debt collector in one lump sum similar to how
you can fund that settlement with your original creditor.
You can shut your mouth over payments. Your original creditor before you charge off,
we talked about in our last video, you can't stretch those payments on
a settlement out longer than 94 days, or let's just call it 3 months.
With debt collectors that is already charged off.
You have a little bit more flexibility there, but watch out.
Don't agree to something that put you in a position where you have made let's say
they stretch out your - they forget 50% of the debt.
You settle for 50% and stretch those payments out over 6 months if you fund the
first 3 months worth of payments suddenly something comes up and you can't get that
money to them and you lose that on a deal and you basically wasted that 3 months
worth of money because now you are back to negotiating the full balance minus
whatever you pay for those 3 months. So don't commit to something that unless
you know you are going to follow through and sometimes that means waiting in until
you have got all the money in place to fund the settlement is wiser, but here
is the tiny factors dealing with debt collectors.
Typically when they get assignment collection accounts from your creditor,
they get them in a 60 or 90 day contract.
So when they haven't got you to pay anything, they are not getting paid.
When you come to the end of that assignment contract and they know they are going to
have to give it back to the original creditor they start to loosen up a little bit.
So you might even time your settlement offers towards the end of the month so
that they can meet end of the month goals. You might want to time your offers closer
to when you can recognize it has been maybe 60 or 90 days since they have had
the account because they are going to lose it and you will find them to be the most reasonable.
In fact, there is even another layer of timing and working your settlement that
support this whole end of the month, end of the contract kind of strategy and it
is that their collector who is working the phone and in that call center for the
collection company also has to meet some goals.
They have to collect a certain amount of debt. They have to get paid or get their
company paid the certain amount of debt to realize their own bonus goals for the
month so they can earn more and maybe even to keep their job because if they are not
a good collector they are not going to stay in that chair very long and I would
rather have somebody else in there, new getting trained, somebody who has potential
to get a lot more money from people that owe.
So use these timing hints and tricks to your advantage.
Know that we provide a lot of support through many different mediums.
We are not just about producing these videos and helping you understand just the basics.
Right below, you can participate with us in the comments we monitor all of our
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Subscribe to our YouTube Channels so you get updates of new videos that we produce
and you might find some great tips and tricks in future releases and then also
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In the upper right corner there is ask CRN, click that and ask a question.
You will get detailed answers from somebody like me, somebody who works with
consumers and debt collectors on a daily basis.
We can help you now to get that whole collection and debt settlement process so
again Michael Bovee for ConsumerRecoveryNetwork.com.
I hope you found some of this information useful and I will see you on the next video.
Thank you for watching.